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Adds a new paragraph (4) to 26 U.S.C. 45Y establishing a phased reduction of the clean electricity production credit for electricity produced from solar or wind energy (80% first calendar year after enactment; 60% second; 40% third; 20% fourth; 0% thereafter).
Amends subsection (f)(1)(A)(vii) and (xi) to limit transferability so that only the portion of the clean electricity production and investment credits not attributable to electricity produced using solar or wind energy may be transferred.
Adds a new paragraph (4) to subsection (e) of 26 U.S.C. 48E establishing a special rule that phases down the clean electricity investment credit for qualified solar and wind facilities based on the calendar year the facility is placed in service after enactment.
Stops allowing the wind- and solar-attributable portions of two federal clean electricity tax credits to be sold/transferred, and phases down the value of the production and investment credits for wind and solar over several years until those credits reach zero. The transferability change applies to taxable years beginning after enactment; the production credit for wind and solar steps down over four calendar years (80%→60%→40%→20%→0%) for electricity produced after enactment; the investment credit for wind and solar phases down over five calendar years (80%→60%→40%→20%→0%) for property placed in service after enactment.
Referred to the House Committee on Ways and Means.
Introduced April 10, 2025 by Julie Fedorchak · Last progress April 10, 2025